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New Found Gold Drills 111.36 G/T Gold Over 2.65 Metres At Lotto Zone

New Found Gold Corp. (TSXV: NFG) announced today the assay results from seven holes drilled at the Lotto zone. The
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This article was originally published by The Deep Dive

New Found Gold Corp. (TSXV: NFG) announced today the assay results from seven holes drilled at the Lotto zone. The results highlighted a yield of 111.36 g/t gold over 2.65 metres.

The seven drill holes are part of the company’s 200-kilometre diamond drill program at its Queensway project in Gander, Newfoundland.

Highlights of the drill results include:

  • NFGC-21-233: 111.36 g/t gold over 2.65 metres
  • NFGC-21-311: 76.81 g/t gold over 2.80 meters, including
    • 112.51 g/t gold over 1.90 metres

The company continues to test new targets at the zone focused on extending the Lotto main vein.

In August 2021, the mining firm announced its plan to raise a total of $50.0 million via a flow-through financing.

New Found Gold last traded at $8.93 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post New Found Gold Drills 111.36 G/T Gold Over 2.65 Metres At Lotto Zone appeared first on the deep dive.

Energy & Critical Metals

TWAICE and pepper partner for full battery transparency in retrofitted commercial vehicles

TWAICE, a provider of predictive analytics software that optimizes the development and operation of lithium-ion batteries, and pepper motion GmbH (formerly…

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TWAICE, a provider of predictive analytics software that optimizes the development and operation of lithium-ion batteries, and pepper motion GmbH (formerly etrofit), a company offering solutions for the electrification (retrofitting) of used and new commercial vehicles such as trucks in distribution transport, buses in local public transport (LPT) and municipal vehicles, are partnering for full battery transparency in retrofitted commercial vehicles.


TWAICE’s analytics software will make the battery performance and lifetime of electrified powertrains transparent and thus more sustainable. This provides pepper customers with battery insights and enables optimal operation.

Retrofitting can be an economical and sustainable alternative to diesel vehicles. pepper retrofits both buses and trucks with all-electric powertrains.

We plan to put around 1,200 buses and trucks on the road with our technology by 2023 alone. The vehicles will be delivered primarily in Europe, North and South America.

—Andreas Hager, Managing Director of pepper motion GmbH

TWAICE will support pepper and commercial fleet operators in both the development and operation of the electric vehicles. The battery analytics software allows the condition of vehicle batteries to be estimated and predicted in the field, long-term battery performance to be analyzed, maintenance to be predicted, warranty commitments to be adjusted, and a realistic residual value to be determined. It can also provide drivers with targeted usage recommendations. In this way, the TWAICE software makes the service life and economic efficiency of the vehicle batteries transparent.

TWAICE is an important strategic technology partner for us. We can use the software not only to analyze the aging process of batteries, but also to derive value-linked different life cycles and usage scenarios that are valuable for our customers and our product development.

—Dr. Ing. Matthias Kerler, Chief Technology Officer of pepper motion GmbH

The analytics data from TWAICE provides pepper with conclusions to further optimize the cycle stability of the batteries used, and to ensure maximum energy-efficient and economical use.

The technology behind the TWAICE predictive analytics software uses artificial intelligence to determine battery condition and predict the aging and performance of lithium-ion batteries.

Analog Devices. Earlier, TWAICE announced a collaboration with Analog Devices, Inc., a global semiconductor company and software solutions provider, with the aim of mastering the challenges of battery life-cycle optimization. The combination of state-of-the-art sensor technology and wireless connectivity from Analog Devices with battery analysis software from TWAICE will benefit customers in the mobility and energy sectors. The alliance will help to significantly reduce warranty risks and recalls, optimize battery life and increase the value of batteries, TWAICE said.

Analog Devices is a global leader in the development, manufacture and marketing of a broad portfolio of high-performance analog mixed-signal and digital signal processing solutions that are used in almost all types of electronic devices. The company is also the market leader in battery management solutions. The collaboration with the Munich software company TWAICE, whose software platform offers end-to-end battery analysis solutions, enables the entire battery life cycle to be optimized.

The aim of the cooperation is to provide a holistic life cycle solution for automobile manufacturers with integrated hardware and software. A complete end-to-end solution with state-of-the-art battery measurements via a wireless battery management system is offered.

Analog Devices’ sensor technology delivers data and data quality that was previously unavailable. TWAICE can deliver the critical battery performance insights for which automotive companies around the world are looking. The integration of sensor and communication solutions from Analog Devices creates an ideal database. The resulting prognoses enable qualified statements about their value and usability at any point in the life cycle of the battery.

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Energy & Critical Metals

Ionic’s Makuutu infill drilling is ticking all the right boxes

Special Report: Ionic Rare Earths’ goal to increase Indicated and Measured resources at its Makuutu project appears to be tracking … Read More
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Ionic Rare Earths’ goal to increase Indicated and Measured resources at its Makuutu project appears to be tracking exactly to plan with drilling starting to return thick, high-grade mineralisation.

Assays of the first tranche of 50 holes drilled as part of its Phase 4 drill program confirmed the intersection of thick, high-grade and near surface intervals of ionic adsorption clay hosted rare earth elements.

These holes were drilled by Ionic Rare Earths (ASX:IXR) to infill the current Makuutu Central Zone East resource area on a 200m spacing to increase confidence from Inferred to the Indicated classification, which is sufficient for mine planning and to support the feasibility study.

While all 50 holes delivered clay and saprolite mineralised intersections above the resource cut-off grade, notable results include:

  • 8.2m at 1,359 parts per million (ppm) total rare earth oxides (TREO) from 3.3m (RRMDD324);
  • 8.4m at 1,258ppm TREO from 2.8m (RRMDD316);
  • 13.4m at 1,232ppm TREO from 4m (RRMDD320);
  • 8.4m at 1,214ppm TREO from 3m (RRMDD294); and
  • 11.2m at 1,160ppm TREO from 2.1m (RRMDD315).

A further two tranches of samples are currently at the Perth laboratory while a fourth tranche will be dispatched from Uganda within days.

Drilling is also continuing with over 325 holes totalling 6,200m completed out of a planned 7,800m program.

Phase 4 Drill Program status plan showing completed and planned drill holes covering the Makuutu Rare Earths Project with the MRE and target areas. Pic: Supplied

“These infill results align well with expectation, given the continuity of the clay previously observed at Makuutu,” managing director Tim Harrison said.

“The thick clay mineralisation in the Makuutu Central Eastern Zone is expected to add substantial grade and tonnage in the Indicated resource classification for the Project as part of the next mineral resource estimate update expect late Q1 2022, and a key input for the feasibility study expected before October 2022.

“The near surface results with such thick zones of elevated TREO grades observed within these infill results are very positive, inferring potential to have a higher-grade mining inventory earlier in the mine plan for the project, and potentially leading to a significant positive impact on the economics of the feasibility study.”

The Makuutu Central Eastern Zone area currently has a resource of 37 million tonnes grading 740ppm TREO.

Makuutu Rare Earths Project

Ionic’s Makuutu project is one of less than a handful of known ionic adsorption clay-hosted rare earths deposits located outside China with scale for economic development.

Such deposits are commonly considered to be some of the cheapest and most readily accessible sources of heavy rare earths

The company currently holds 51% of Makuutu though it will move to 60% on completion of the feasibility study before October 2022. It also has the pre-emptive right to acquire the remaining 40% of the project.

It also plans to complete the downstream scoping study by mid-2022 with preliminary metallurgical testwork already underway to support process modelling that will underpin the process design using conventional solvent extraction.

Makuutu currently has a global mineral resource estimate of 315Mt at 650ppm TREO, with substantial exploration targets located across a 37-kilometre-long mineralisation trend.

 


 

 

This article was developed in collaboration with Ionic Rare Earths, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Ionic’s Makuutu infill drilling is ticking all the right boxes appeared first on Stockhead.

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As Sprott Goes Hunt Brothers On Uranium a Copycat Joins the Squeeze to Force an Explosive Move Higher

As Sprott Goes "Hunt Brothers" On Uranium, A Copycat Joins The Squeeze To Force An Explosive Move Higher

Exactly two weeks ago, we laid out…

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As Sprott Goes "Hunt Brothers" On Uranium, A Copycat Joins The Squeeze To Force An Explosive Move Higher

Exactly two weeks ago, we laid out the investment thesis for what our friends at Adventures in Capitalism dubbed was a "bitcoin-like opportunity in Uranium." In a nutshell, in mid-August, the Sprott Physical Uranium Trust, then roughly $300 million, announced that it would unleash an unprecedented buying spree in physical uranium, a relatively small market, in hopes of forcing a physical shortage and sending the price of urnium higher, leading to more buying of the Trust, more purchases of uranium, even higher prices and so on.

While some voiced concerns that this strategy was similar to what the Hunt Brothers tries to do with silver back in 1980, when the precious metal rose tenfold in months only to crush just as rapidly once the market became "uncornered"  there are several distinct differences between what the Hunts and Sprott are doing (most notably the inability by producers to rapidly flood physical to meet demand, as well as the lack of a sizable paper market to short the move) so far - less than a month later - Sprott's strategy has proven extremely successful, so much so that the Canadian asset manager upsized the size of its Trust from $300MM to $1.3BN... and just this morning got its first copycat, Uranium Royalty Corp (UROY) which this morning announced that it was taking a page out of the Sprott book and would expand its physical uranium holdings to 648,068 pounds.

But before we get there, a quick excerpt from a report this week by Bank of America which has broken down the Sprott strategy and discussed how it will impact the price of uranium going forward, and why it just hiked its price target for Cameco by 45% to $29/share

SPUT/Byron/Dresden add 4% to global demand, PO upped

Uranium (U3O8) purchased by the Sprott Physical Uranium Trust (SPUT) since launching an at-the-market (ATM) equity program on August 17th has added 3% to global demand. This is 52% annualized, or $4bn at flat prices. Prices have risen 42% to $43.75/lb. A supply response is likely but might take time and more SPUT buying is likely, we think. The Illinois House and Senate approved funding to keep the Byron & Dresden nuclear plants from closing. We add both back to our model, increasing annual U3O8 demand by 1.1%. We increase 2021E-2023E U3O8 prices by 18%, 41% and 18% to $36.30, $53.50 and $48.50/b. We raise our price objective (PO) for Cameco (CCO) by 45% to C$36.25/sh ($29/sh), CCO: Neutral as we think outlook is mostly reflected in the shares.

SPUT ATM funding increased to $1.3bn

SPUT has raised roughly $245mn of the $300mn maximum set-out under its ATM program. On Friday, SPUT obtained approval to increase the maximum to $1.3bn. The limiting factor on future SPUT capital raises is market demand for its units, which appears to us to be strong and correlated to SPUT’s ability to continue pushing up uranium prices. Given the relatively small size of the U3O8 spot market (~$2.7bn in 2020, unadjusted for churn), SPUT buying should push spot prices still higher, until supply responds or the price gets high enough to spook investor demand for SPUT units.

So the weakest link in the Sprott strategy is how quickly will incremental supply come on line. The good news for Sprott is that, at least according to BofA, it won't be for some time.

A supply response is likely but not immediately

U3O8 held by junior miners and hedge funds, uncommitted supply from producers and a reversal of carry trades are among potential near-term sources of new market supply. Potentially larger sources are 58Mlbs of idled production capacity and 16.8Mlbs of unutilized capacity in Kazakhstan. However, a large majority of this is unlikely to respond without long-term contracts and would require six or more months to ramp-up.

UxC estimates that hedge funds hold around 11Mlbs of U3O8 that was mostly purchased in 2018 and 2019 when prices averaged just $24.61/lb and $25.84/lb vs. the current spot price of $43.75/lb.

There can be many sources of uncommitted supply with BHP’s Olympic Dam (8-10Mlbs annually) and the Navoi mines in Uzbekistan (9Mlbs annually) the usual candidates. Other less obvious sources also exist. For example, we estimate that in H1’21, China imported nearly 21Mlbs of U3O8 which equates to approximately 82% of the country’s 2021E reactor requirements. In addition, Chinese utilities are estimated to hold as high as or more than 460Mlbs of U3O8 inventory, sufficient to cover expected requirements for the next 11 years. As prices rise we see the possibility for some of the U3O8 produced in Chinese owned mines outside of China to be sold into the spot market. We estimate that in H2’21, Chinese owned mines outside of China will produce roughly 8Mlbs of U3O8. We do not expect Chinese inventories to be sold, however. Those are considered strategic.

Kazakhstan under-utilizing capacity: In Kazakhstan, the world’s largest U3O8 producing nation, there are several uranium mines now producing below capacity. On a 100% basis, these mines have a capacity of around 75.4Mlbs but we forecast them producing 58.6Mlbs in 2021E, leaving 16.8Mlbs of additional production potential trough flexing up utilization. However, similar to Cameco, Kazatomprom has indicated it will not flex up its production until they are signing long-term contracts and the price is fair. The latter condition may now be realized, the former remains to be seen. We think KAP sees $40-$45/lb as fair pricing.

Idled capacity is substantial but a majority is disciplined: According to data compiled by the World Nuclear Association (WNA), there is 54.4Mlbs of idled capacity. Cameco, which controls 58% of this idled capacity, has indicated it must fill its contract book at attractive pricing before it will restart McArthur River and has indicated that very high prices would be necessary to restart Rabbit Lake. The price indicated by Cameco for a McArthur restart is $40/lb or greater. Paladin has suggested a similar approach with its Langer Heinrich mine which accounts for another 11% of this idled capacity. Of the remaining 31% of potentially undisciplined producers only 17% (8.9Mlbs) is profitable at the current spot price on a full cost basis. However, much of this potentially undisciplined production will soon be profitable as prices rise.

But while we wait for supply to rise, one thing is clear: producers - such as Cameco - will benefit when utilities re-enter the market, to wit:

The higher spot price means produced supply is more competitive vs. the carry trade, presenting an opportunity for longer-term contracting. When utilities re-enter the term market, existing producers should benefit. Will utilities enter the term market this week as they have historically? Likely, but volumes are uncertain and coverage is solid.

Of course, much of the production on the cost curve would require far higher prices to be profitable. The chart below shows the estimated 2021 global uranium industry cost curve. Full costs include all mining, processing and site G&A costs as well as sustaining capex. Sunk costs and a rates of return are excluded. The exhibit shows that our long-term U3O8 price forecast of $47/lb is in line with the 90th percentile on the cost curve.

In other words, there is some marginal supply available but the price of uranium will have to rise well above $60 for it to be accessible. Today uranium is trading around $46, up almost 50% since Sprott launched his buying vehicle.

And while utilities are currently well-covered, NPP life extension may change that substantially. As BofA notes, "US utilities have the best contract coverage in 30 years. In the EU coverage is even better. We think utilities thus have bargaining power even with much higher spot prices and see contract prices that are lower (closer to our $47/lb long-term price). Yet, potential nuclear plant life extensions like Byron and Dresden will mean less inventory and contract coverage. We lower our 2021E loss per share (LPS) to $0.45 from $0.22, raise 2022E EPS to $0.25 from $0.08 and raise 2023E EPS to $0.59 from $0.20. Using a net asset value approach, CCO shares imply a $50/lb U3O8 price."

So what does all this mean for the industry? In a nutshell, sharply higher prices: here is BofA.

Given that we think there will be at the minimum a sustained bid in the spot market for U3O8 from SPUT combined with already tightening markets and the addition of Byron and Dresden to our demand forecast, we raise our 2021E to 2023E U3O8 price forecasts by 18%, 41% and 18% to $36.30, $53.50 and $48.50/b. Our long-term price is pushed to 2026E from 2025E and increased to $47/lb supported by an updated production cost curve. Our view is that prices will continue rising but peak in Q1’22 as plans for productive supply responses are revealed. We expect CCO to restart McArthur River in 2023E at a capacity utilization of around 30% and steadily ramp up from there.

 

A key driver of how fast uranium prices normalize will be the response time at the world's largest miner, Cameco, which according to BofA is "the only large, liquid, US listed vehicle for exposure to uranium." As BofA notes, "we are now assuming that CCO restarts it McArthur River mine, the largest uranium mine in the world at annual production of 25Mlbs, in 2023E. However, we see a very gradual restart with capacity utilization of just 30% in 2023E, 50% in 2024E to 2026E and then 100% from 2026E onward."

To be sure, Cameco will be asking itself does it want to produce more and lower both the price of uranium and its stock, or take its time with ramping production. One look at the recent action of the OPEC+ cartel should give an indication as to what it may do.

In other words, we do not expect major downward pressure on either the price of uranium or CCJ for the foreseeable future, something which even retail investors have now grasped making CCJ the most actively discussed name on the WallStreetBets forum a few days ago.

So with all that in mind, we look at what appears to be the first Sprott copycat to emerge in the past month, namely Uranium Royalty, which has surged as much as 18% after announcing that it’s entered into contracts for three additional spot purchases totaling 300,000 pounds of uranium, noting that the average cost of the purchases is $38.17 per pound, a number which is already a substantial discount to today's price.

Following completion of the deliveries, URC CN will hold a physical inventory of 648,068 pounds of uranium at a weighted average cost of $33.10 per pound. More from the press release:

It is within URC's mandate to make periodic purchases of physical uranium to provide attractive commodity price exposure to shareholders, especially in these early stages of a bull market in uranium. The global mega-trend towards de-carbonization is providing a major catalyst for carbon-free, safe, and reliable nuclear energy. The supply and demand fundamentals for uranium continue to improve, with demand for uranium now exceeding pre-Fukushima levels and global mine production (128 million pounds) expected to lag global consumption (191 million pounds) by 63 million pounds in 2021 (UxC data – Q3 2021 report).

This is the 5th year of the production/consumption gap which has had a positive impact on drawing down excess market inventories. The purchasing activities of producers and financial entities, like the Sprott Physical Uranium Trust have accelerated this rebalancing as of late, resulting in a 49% rise in the spot price in the past five weeks.

As Sprott continues to upsize its physical uranium fund to meet growing demand, and as the price of both uranium and producers continues to rise, expect many more tactical and strategic buyers of uranium to emerge as suddenly Uranium is the new silver and everyone is hoping to be the new Hunt Brothers.

Tyler Durden Wed, 09/15/2021 - 11:44

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