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Lomiko Metals: Graphite Miners’ Outlook Bullish Given Strong Demand for EV Battery Minerals Forecasted

2021.08.17
In late July, Canadian junior miner Lomiko Metals (TSXV: LMR) (US-OTC: LMRMF) made its presence felt in the battery minerals space with the…

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This article was originally published by A Head of the Herd

Lomiko Metals: Graphite miners’ outlook remains bullish given strong demand forecast for EV battery minerals

2021.08.17

In late July, Canadian junior miner Lomiko Metals (TSXV: LMR) (US-OTC: LMRMF) made its presence felt in the battery minerals space with the delivery of a Preliminary Economic Assessment (PEA) on its La Loutre graphite property in Quebec.

The company’s project is situated 117 km northwest of Montreal, and 53 km east of Imerys Carbon and Graphite’s Lac des Iles mine. Originally explored for base and precious metals, the property also hosts graphite as evidenced by historical reports.

La Loutre location map

The 2,509-hectare project comprises two zones: the Electric Vehicle (EV) zone and Graphene-Battery zone (see map above). The names are derived from the potential applications for the graphite contained in each zone.

Lomiko says its aim is to make La Loutre a cornerstone mine for future growth in the province. With the support of a strong treasury, the company plans to commence a preliminary feasibility study and environmental impact studies while continuing to explore the geological potential of the property.

PEA Summary

The PEA envisioned a 15-year open-pit operation capable of producing 97,400 tonnes of graphite concentrate per year on average, for a total of 1.4 million tonnes of graphite output over its mine life.

The first eight years will target production averaging 108,000 tonnes per annum of payable graphite concentrate, peaking at 112,000 tonnes per annum in year 4.

This early-stage study was based on an estimated 23.2Mt of indicated resources grading 4.51% graphite for 1.04Mt contained graphite, plus 46.8Mt of inferred resources grading 4.01% graphite for 1.9Mt of graphite (all based on a cut-off grade of 1.5% Cg).

Mineral resource estimate (effective May 14, 2021

Cash costs are projected to be $386/tonne graphite concentrate, and all-in sustaining costs (AISC) at $406/tonne.

Initial capital costs for the project were estimated at C$236.1 million, which includes mine pre-production, processing and infrastructure, with another C$37.7 million budgeted for sustaining capital over the mine life.

Using a graphite concentrate price of $916/tonne Cg and an 8% discount rate, the PEA established an after-tax net present value (NPV) of C$185.6 million and an internal rate of return (IRR) of 21.5% for the project. Its initial capex could be paid back in just over four years.

Post-tax NPV (8%) sensitivity
Post-tax IRR sensitivity

According to Lomiko, the figures presented in the La Loutre PEA “clearly” demonstrated its potential to become a major graphite producer in North America, as well as a “highly profitable mine in one of the most prolific producing regions in Canada.”

Small-cap investors also welcomed the PEA results, bidding up the company’s stock to a two-month high immediately following the announcement with over 350,000 shares changing hands in one day.

One of the most important aspects investors may have noticed about La Loutre is its exploration upside.

The PEA study indicated the property has the geological potential to extend the mine beyond its initial 15-year life. There is also opportunity to expand the scale of production by increasing the existing resource through ongoing exploration and drilling.

FRC Coverage

In light of the PEA release, Vancouver-based equity research firm Fundamental Research Corp. (FRC) recently initiated coverage on Lomiko Metals,reiterating a BUY rating for the company’s stock and raising their price target C$0.27 to C$0.31 per share.

FRC’s analysis is based on a robust PEA for the La Loutre graphite property, as well as the company’s financial standings and its exploration potential relative to comparable miners.

According to the firm’s calculations, Lomiko’s shares are trading at just 16% of the project’s after-tax NPV of C$186 million (and IRR of 21.5%) given by the PEA. The NPV and IRR figures are considered healthy by FRC even in weaker scenarios.

The 15-year mine life (open-pit and flotation) at 4,100 tpd was considered a conservative estimate, as it accounted for only 65% of the indicated and inferred resource.

The study also showed a 141% increase in the La Loutre resource estimate versus FRC’s original estimate of 75%, with weighted average grades increasing by 20% as well.

The company is now working to complete a Preliminary Feasibility Study (PFS) and Environmental Impact Studies, along with pursuing resource expansion drill programs, which imply further growth opportunities.

Financially, Lomiko is in good standing with nearly C$3.8 million cash on hand and working capital of C$4 million as of July 31. Outstanding stock options and warrants could bring in another C$4.3 million to the company’s treasury. Its extremely high current ratio (96.9) indicates the company has accumulated a large amount of assets relative to debt.

Integrating the PEA results, FRC placed LMR at a value of C$0.38 per share using the DCF (Discounted Cash Flow) valuation model (see below). However, this was based on a significantly higher discount rate of 15% to account for the risks associated with development projects.

Source: FRC

As a graphite investment, Lomiko also looks relatively palatable compared to its peers.

On an enterprise value to resource basis, FRC determined that LMR is trading at C$15/t versus the sector average of C$27/t (as of August 6, 2021).

From this, the firm arrived at a valuation of C$0.23 per share for Lomiko’s comparables, which implies that LMR is severely undervalued in the current market.

The table below shows LMR and comparable junior resource companies focused on graphite projects. Note that none of the projects are directly comparable, as there are significant variations in the characteristics (flake size, distribution, grade, etc.) of each project.

Source: FRC/Company websites and technical reports

Taking the average of all DCF and comparable valuations, LMR was given a fair value estimate of C$0.31 per share, up from the previous estimate of C$0.27.

FRC also pointed out that after reporting strong gains in the first few months of this year, shares of graphite mining juniors have pulled back in the past few months, but are still trading significantly higher year-on-year. Graphite prices have stayed relatively flat year-to-date.

FRC believes that the recent dip in share prices offer a good entry point for investors, as it sees demand for natural graphite used in batteries to grow by at least 5 times this decade, with the market entering a supply deficit beginning in 2025.

Graphite in Demand

As we know, investing is all about seeking value over time by recognizing macro trends in the global economy.

In the midst of a “clean energy” transition, EV battery materials are braced for an unprecedented surge in demand as investors pin their bets on more aggressive climate pledges going forward (more so in the aftermath of the recent IPCC report).

Graphite is a foundational part of this revolution. Like lithium, it is a key ingredient in EV batteries.

In fact, a standard lithium-ion battery contains 10-15 times more graphite, which is used in the anode, than the cathode material lithium. This makes graphite irreplaceable in the modern EV battery chemistry.

Based on the current trajectory of accelerated battery use, Benchmark Mineral Intelligence estimates that the amount of graphite needed will rocket to 1.75 million metric tonnes by 2028, a nine-fold increase over 2017 levels.

Similarly, UK-based consultancy Roskill expects total graphite demand over the next 10 years to grow around 5 to 6% per year. A recent BloombergNEF study estimated that 4 times more graphite will be needed by the end of this decade (see below).

At this rate, demand would comfortably outstrip graphite supply within years. Last year, the global mined production of graphite was 1.1 million tonnes, suggesting a coming supply deficit if no more graphite supply sources are developed.

Taking graphite’s other end uses — aviation, automotive, sports, steel and plastic industries — into consideration, the supply crunch becomes more magnified not just from an EV perspective.

In North America, the situation is more dire, as most of the continent relies on foreign imports of natural graphite. About 70% of the world’s output comes from China, the biggest EV market, giving it a near-monopoly status in the graphite market.

In contrast, the US, while also an economic powerhouse, has no domestic production of graphite. Canada only produced 10,000 tonnes in the past year, representing 1.5% of China’s output.

This is why both the US and Canada have firmly placed graphite in a list of critical minerals that are deemed vital to the economic security of their respective nations. In January 2020, the two governments announced the Joint Action Plan on Critical Mineral Collaboration, aiming to develop a strategic pathway for domestic production of graphite and other key minerals.

This year, beneficiaries of this homegrown strategy are beginning to emerge. In February, the Quebec government gave the green light to Nouveau Monde (TSXV: NOU) to begin construction work at its Matawinie graphite project.

Once complete, this will be the largest graphite mine in North America, with an estimated 100,000 tonnes of production over a 25-year life according to the 2018 Feasibility Study.

Over the past 12 months, Nouveau Monde has seen its stock more than quadruple on the back of positive developments on its proposed graphite mine.

Conclusion

Located 200 km southwest of Matawinie is Lomiko’s La Loutre property, which offers a similar annual production capability based on an earlier-stage study. Could this be the next large-scale, low-cost graphite project in Canada?

At present, there is only one graphite mine in operations across North America — the Lac des Iles mine (Imerys Graphite & Carbon), located within the same mineral-rich part of Quebec as La Loutre. However, this mine is slated for closure in 2022, which means a suitable replacement must be sought out, presenting LMR an opportunity to rise to the occasion.

“La Loutre has shown it has the potential to become a highly profitable graphite mine in one of the most prolific producing regions in Canada,” LMR president and CEO Paul Gill recently stated in a press release.

Commenting on the critical minerals collaboration agreements Canada has in place with the US and EU, Gill said: “Our goal for the project is to provide a source of competitively priced graphite for customers in the North American and European markets.”

Lomiko Metals Inc.
TSXV:LMR, OTC:LMRMF, Frankfurt:DH8C
Cdn$0.12, 2021.08.12
Shares Outstanding 215m
Market cap Cdn$26.87m
LMR website

Richard (Rick) Mills
aheadoftheherd.com
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Author: Gail Mills

Articles

The Red-Hot Bull Market Investors Are Ignoring

We are right now in the early stages of a red-hot bull market for one often-overlooked natural resource.
It’s an essential commodity – one that is…

We are right now in the early stages of a red-hot bull market for one often-overlooked natural resource.

It’s an essential commodity – one that is currently worth about 100 times more than natural gas.

Soaring demand for this commodity – at a time when we’re facing a critical shortage – has created an explosive growth opportunity for those investors who know where to look.

This opportunity is in helium.

Yes…helium is now about 100 times more valuable than natural gas.

A resource that has for decades been thought of only as part of a child’s birthday balloon is actually one of the world’s most critical – and irreplaceable – commodities.

And right now we’re on the verge of a critical shortage.

Making matters worse is that, thanks to a combination of factors, there have been virtually no companies exploring for new sources of helium until very recently.

This opportunity is so potentially lucrative that an expert collaboration of natural resource veterans has come together to develop projects with extraordinary potential.

The company is Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF), a little-known Canadian company that now appears primed for rapid growth.

This Team Led Development on One of North America’s Largest Oil & Gas Discoveries…and Now They’re Seeking to Do It Again – With Helium

There’s a dire need for new, North American helium supplies to be brought online as quickly as possible.

For decades, the U.S. was the world’s largest producer of helium, accounting for as much as 40% of the worlds’ supply.

The world’s single largest source of helium for the past 70 years has been the U.S. Federal Helium Reserve (FHR) in Amarillo, Texas.

But within the past few years, the FHR stockpile has been depleted, and the helium market has opened up to the private sector for the very first time in modern history.

And with helium seeing such a tremendous surge in demand – thanks to its use in semiconductors as well as a host of other critical industries – a significant supply gap is emerging for this essential resource.

This is precisely the opportunity that helped bring together an All-Star collection of natural resource industry veterans with Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF).

It’s a team that was (while formerly at Encana) involved in the early stages of the discovery of the Montney Formation, one of the premier natural gas formations in North America.

Without question, the Avanti Energy team is the most experienced – and most decorated – in the helium space, with direct experience in developing multi-billion dollar projects from their time at Encana.

And that’s what this team is working to do again at Avanti Energy…with drilling set to commence on an initial three wells in what could ultimately prove to be a significant helium project in Montana.

Avanti CEO Chris Bakker has over two decades of experience in oil and gas, most recently working as a commercial negotiator with Encana (now Ovintiv) for major facilities and pipelines in the Montney gas play.

His expertise includes all facets of Natural Gas Exploration like land acquisition, exploration, drilling, well production and facility integration and construction.

Vice President of Subsurface Genga Nadaraju has over two decades of experience in the oil & gas industry…Director of Geoscience Dr. Jim Wood has over 30 years of experience as a geologist specializing in reservoir characterization…VP of Engineering Ali Esmail has spent the past 13 years specializing in reservoir engineering …and Senior Geophysicist Richard Balon has over 30 years of experience in the Western Canadian Sedimentary Basin.

This is an experienced team with an impressive track record of success in the oil and gas industry.

And now they appear poised to do it again.

Avanti Energy Could Be Sitting On As Much As $1 Billion Worth of Helium – or More – in the Greater Knappen Area

This very same successful team is now using the same methodology at Avanti Energy to explore for what it hopes will prove to be some of the richest helium deposits in the world.

The company’s strategy to date has been to pull in on only the very best properties in western Canada and the United States.

This search for “the best of the best” led Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) to the Greater Knappen area of Alberta and Northern Montana.

The company has a 100% ownership stake in approximately 69,000 acres of helium prospective land in this mineral-rich region.

Just recently, the company announced that it had completed its geological interpretation of this property, discovering an estimated undiscovered and unrisked resource potential of:

* Low case: 1.4 bcf of Helium

* Mid case: 4.4 bcf of Helium

* High case: 8.9 bcf of Helium

Based on these estimates, it’s possible that Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) could be sitting on as much as $1 billion worth of helium.

And they’re already moving forward with an aggressive schedule to bring production online as early as Q3 of 2022.

In fact, the first well in Montana is expected to be spud in early December with well results ready sometime early in the New Year.

And on November 9, the company announced that it has contracted with T&S Drilling for its initial three well drilling program at its Greater Knappen land holdings in Northern Montana.

The initial drilling program is scheduled to spud in early December and will target three separate pay zones, two in the Beaverhill Lake formation and one in the Basal Sandstone formation. The drilling targets exhibit structural highs with relief of 70m to >200m. Previously drilled wells surrounding Avanti’s lands have high helium shows in multiple Devonian and Cambrian targets with helium percentages of up to 2% and nitrogen percentages of up to 96%.

Analysts at Beacon Securities report that, “Our expectation of 3 exploratory wells in Q4/21 and initial helium production in Q3/22 remains unchanged…we continue to have high expectations for the Greater Knappen area. The initial drilling program in Montana and Alberta will just be the start of a multi-year exploration and development program for AVN. We maintain our $3.80 target price and our Spec Buy rating.”

This potential helium production – as early as Q3 2022 – is happening for Avanti Energy in the midst of soaring demand thanks to helium’s many impactful uses.

Why Helium is Seeing Such a “Rocket Launch” of Demand

As a noble gas helium is not combustible and has properties that make it irreplaceable for a number of important industrial applications.

Helium is the second most abundant element in the universe but it is extremely rare on earth.

With the global helium shortage we are now facing, it’s estimated that the supply will not keep up with demand for the next 20 years.

And that is happening as industry demand is projected to increase at a compound annual growth rate of 11% each year through 2037.

While helium is most commonly thought of as being used for the inflation of balloons, the truth is helium is used in a number of critical parts of daily life.

* Medical Industry – Helium is used to operate MRI machines and as part of respiratory treatments.

* Cryogenics – Helium is the only element that can come close to reaching absolute zero.

* Internet Connectivity – Fiber optic cables must be manufactured in a pure helium environment.

* Electronics – Many electronics and semiconductors – including mobile phones – require helium to be used at various stages of the production process.

* Computers – Helium-filled hard drives offer 50% higher storage capacity with 23% lower operating power.

* Car Air Bags – Helium is the gas of choice for effecting the near instantaneous deployment of air bags in cars.

Helium is used by companies like Amazon, Google and Netflix to help cool their data centers. And both the U.S. and Canadian governments have recently added helium to their critical minerals lists.

Not to mention… an estimated $12 million worth of helium is needed for a single space rocket launch.

In fact, the single largest buyer of helium is NASA, consuming almost 75 million cubic feet annually to cool liquid hydrogen and oxygen for rocket fuel.

And with the highly publicized rocket launches from Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin…that consumption of helium for space launches is only likely to increase in the months ahead.

That’s why Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) right now appears to be such an attractive potential investment.

– The company is led by a team of oil and gas executives with a history of success in the exploration space, including the discovery of the Montney Formation, one of the premier natural gas formations in North America.

Avanti Energy’s shares are currently trading for less than $1.50 per share – meaning there is tremendous upside potential.

– Beacon Securities has established a price target of $3.80 for the stock – more than a 100% increase from its current level and maintains its Spec Buy rating on the company.

– In addition, Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) Chris Bakker is so confident in the company’s potential that he spent nearly $500,000 buying stock at levels nearly double where the stock is now, with purchases at $2.91 per share on May 5, 2021 and at $2.45 per share in June. And with the recent drilling announcement, Bakker started buying again…

– The company has identified a significant potential helium resource on its Greater Knappen property and is moving quickly to commence drilling. With a target spud date in early December for the first well, the company is on target to begin initial production upon successful testing sometime in Q3 of 2022.

Other companies that could benefit from a different kind of shortage…

While the tech industry runs on helium…it is also dependent on another kind of resource. One that both a shortage of materials, and production shutdowns during COVID-19 has made increasingly scarce. Semiconductors.

One of the world’s leading semiconductor manufacturers, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) has a storied history and helped shape many technologies we rely on today. Founded by Morris Chang in 1987 as part-time contract chipmaker for IBM and Motorola–the company that would eventually become known simply as “TSM ” or Taiwan Semiconductor Manufacturing Company was only 200 strong when it started out back then! It wasn’t until quality control became its top priority day 1 though; this focus makes all difference because even with more employees than any other foundry group at over 14k people now (with plenty still coming soon) they’re able to maintain those high standards which led them into becoming one of Apple Inc.’s primary suppliers alongside Nvidia Corp., Qualcomm, and more.

The global semiconductor industry is a highly competitive one and only five companies in the world own chip-making facilities, making Taiwan Semiconductor a standout in the industry.. Indeed, many leading top semiconductor companies are “fabless,” meaning they only design the chips but rely on other companies, known as foundries, to actually make the chips. The shift to outsourcing has been having a big effect on structural changes and related capacity because companies that cut orders in the early days of the pandemic have been forced to go to the back of the line.

Taiwan Semiconductor is a key player to watch in both the helium shortage and the semiconductor shortage. As the world’s largest chipmaker, it needs helium to survive. And with a semiconductor supply squeeze looming, it could stand to benefit big when Big Tech comes knocking.

Intel Corporation (NASDAQ:INTC) is a multinational technology company headquartered in California. It has been around since the late 1950’s, when it was founded by Robert Noyce and Gordon Moore who first coined their portmanteau name- Integrated Electronics or Ie. Intel supplies processors for computer systems such as desktops laptop servers tablets mobile phones (including smartphones) and more; they also make motherboard chipsets that connect these devices together so you can use your processor effectively while having access to fast memory too!

At its core, Intel is a chipmaker. And a big one at that. It’s also a leader in the global semiconductor game thanks to its investments in 65nm process, an advanced node used in volume CMOS semiconductor fabrication. Intel has manufactured semiconductors in Ireland since 1990, and has invested around $6 billion there in this time, but is beginning to branch out with new investments in the United States, as well.

Advanced Micro Devices (NASDAQ:AMD) is an innovator in the world of computing and graphics. The company was founded over forty years ago with a single mission: to advance technology as fast it could be invented. Since then, they’ve become one of the most relied upon brands for processing power – both at home on your own PC or game console; but also when you need high performance computer systems that can process data quickly enough maybe even live video streaming where every millisecond counts!

Advanced Media Devices isn’t just building home computers, either. AMD also is building CPUs to be used in massive data centers, the kind supporting the likes of Microsoft’s Azure cloud-based workstations and desktops and much more. And its GPUs are providing the speed, security, and scalability to keep these data centers performing at the level needed to push modern tech into the future.

Nvidia (NASDAQ:NVDA), AMD’s biggest competitor, is a company that develops graphics processing units, or GPUs. Nvidia was founded in 1993 and has been making waves in the gaming industry ever since with their innovative products. They are continually releasing new technologies to stay ahead of the competition and have an excellent reputation for quality. The company also manufactures processors that power many other devices such as automobiles, robots, and smartphones. These processors are often used for artificial intelligence systems like driverless cars or voice commands on mobile phones so we can expect Nvidia’s technology to keep getting more advanced over time!

Nvidia’s dedication to innovation is clear in all areas of tech, from computer graphics and artificial intelligence research that are core to robots or future cities.

It’s also pushing new technologies into the world with its enterprise server GPUs—even setting records! Thanks for being there when we needed you most, Nvidia–and don’t worry: your hardware will not go unsupported now that it has been so instrumental before this point too.

With more and more demand coming for semiconductors and new chip technology hitting the market, companies like Nvidia, AMD, Taiwan, Samsung and Intel are going to be some of the biggest benefactors. They’re already well-known in the industry, and this could just be their time to really shine. But a looming helium shortage could present a number of complications for the booming tech giants.

IBM Corporation (NYSE:IBM) or International Business Machines Corporations an American multinational technology company with headquarters in Armonk New York. They specialize in developing and providing computer related products worldwide like the automated teller machine (ATM), magnetic stripe card which we use today for credit cards among other things such as floppy disks drives; hard disk drives that store data magnetically on aluminum foil within a circular shape called platters rotating at over 3 inches per second so it can be read by head movements inside our computers.

IBM is often considered one of the most innovative companies in its field, with a long list of inventions to date. In fact they were responsible for many technologies that are now taken-for granted and seen around us every day like ATMs or floppy disks! And while this history certainly makes them an excellent candidate when it comes time to explore new trends such as blockchain technology; their rapid growth means they aren’t ignoring any potential opportunities – which could very well turn out right where you least expect them first.

IBM’s blockchain platform, built on the open-source Hyperledger Fabric platform from the Linux Foundation is helping companies with a wide variety of blockchain solutions including tools for the finance sector, supply chain transparency, and letters of guarantee. IBM’s blockchain platform even helps interested parties develop their own blockchain solutions through educational tools and personalized assistance.

Lithium Americas Corp. (TSX:LAC) is one of America’s most critical and promising pure-play lithium companies. With two world-class lithium projects in Argentina and Nevada, Lithium Americas is well-positioned to ride the wave of growing lithium demand in the years to come. It’s already raised nearly a billion dollars in equity and debt, showing that investors have a ton of interest in the company’s ambitious plans.

Lithium America is not looking over the growing pressure from investors for responsible and sustainable mining, either. In fact, one of its primary goals is to create a positive impact on society and the environment through its projects. This includes cleaner mining tech, strong workplace safety practices, a range of opportunities for employees, and strong relationships with local governments to ensure that not only are its employees being taken care of but local communities, as well.

Celestica (TSX:CLS) is a key company in the resource boom due to is role as one of the top manufacturers of electronics in North America. Celestica’s wide range of products includes but is not limited to communications solutions, enterprise and cloud services, aerospace and defense products, renewable energy, and even healthcare tech.

Due to its exposure to the renewable energy market, Celestica’s future is tied hand-in-hand with the green energy boom that’s sweeping the world at the moment. It helps build smart and efficient products that integrate the latest in power generation, conversion and management technology to deliver smarter, more efficient grid and off-grid applications for the world’s leading energy equipment manufacturers and producers.

Turquoise Hill Resources Ltd. (TSX:TRQ) is a key player in Canada’s resource and mineral industry. It is a major producer of coal and zinc, two resources with distinctly different futures. While headlines are already touting the end of coal, zinc is a mineral that will play a key role in the future of energy for years and years to come.

In addition to its zinc operations, Turquoise Hill is also a significant producer of Uranium. Uranium is a key material in the production of nuclear energy, which many analysts are suggesting could be a major component in the global transition to cleaner energy. While the mineral has not seen significant price action in recent years, there are a number of new projects set to come online across the globe in the medium term, which could be a boon to Turquoise Hill, especially as alternative energies gain traction in the marketplace.

Teck Resources (TSX:TECK.A) could be one of the best-diversified miners out there, with a broad portfolio of Copper, Zinc, Energy, Gold, Silver and Molybdenum assets. It’s even involved in the oil scene! With its free cash flow and a lower volatility outlook for base metals in combination with a growing push for copper and zinc to create batteries, Teck could emerge as one of the year’s most exciting miners.

Though Teck has not quite returned to its January highs, it has seen a promising rebound since April lows. In addition to its positive trajectory, the company has seen a fair amount of insider buying, which tells shareholders that the management team is serious about continuing to add shareholder value. In addition to insider buying, Teck has been added to a number of hedge fund portfolios as well, suggesting that not only do insiders believe in the company, but also the smart money that’s really driving the markets.

Maxar Technologies (TSX:MAXR) is one of the leading space companies on the planet, founded nearly 20 years ago. Maxar has a variety of services, including satellite development, space robotics, and earth observations. One of their most well-known products is the Canadarm2 robotic arm for the International Space Station (ISS). The ISS has been operational since 1998 with more than 100 missions to date. Maxar Technologies has had a history of partnering with NASA to maintain the ISS’s systems as well as providing them with new technologies such as the Canadarm2 robotic arm. is a moon-bound tech stock to keep an eye on. While space firm specializes in satellite and communication technologies, it is also a manufacturer of infrastructure required for in-orbit satellite services, Earth observation and more.

More importantly, however, Maxar’s subsidiary, SSL, a designer and manufacturer of satellites used by government and commercial enterprises, has pioneered research in electric propulsion systems, lithium-ion power systems and the use of advanced composites on commercial satellites. These innovations are key because they allow satellites to spend more time in orbit, reducing costs and increasing efficiency.

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Energy & Critical Metals

Baselode Reports High-Grade Uranium Within 15.5 Metre Mineralized Zone at ACKIO Discovery

Baselode Reports High-Grade Uranium Within 15.5 Metre Mineralized Zone at ACKIO Discovery
Canada NewsWire
TORONTO, Dec. 6, 2021

TORONTO, Dec. 6, 2021 /CNW/ – Baselode Energy Corp. (TSXV: FIND) (OTCQB: BSENF) (“Baselode” or the “Company”) is pleased…

Baselode Reports High-Grade Uranium Within 15.5 Metre Mineralized Zone at ACKIO Discovery

Canada NewsWire

TORONTO, Dec. 6, 2021 /CNW/ – Baselode Energy Corp. (TSXV: FIND) (OTCQB: BSENF) (“Baselode” or the “Company“) is pleased to report Uranium assay results from the first diamond drill hole, AK21-01, of the recent ACKIO Uranium discovery (“ACKIO“) on the Hook project (“Hook“), Athabasca Basin area, northern Saskatchewan.

Highlights include:

  • High-grade* Uranium confirmed; 1.29 wt% U3O8 over 0.5 m at 138.8 m and 0.66 wt% U3O8 over 0.5 m at 142.3 m
  • Primary mineralized zone measuring 15.5 m of 0.13 wt% U3O8 starting at 134.3 m
  • Multiple uranium intersections occurring over 200 m of drill hole length.

“We are very excited with the confirmation of high-grade Uranium at ACKIO. The ACKIO discovery is beginning to take shape; with high-grade Uranium intersected near-surface, multiple and widespread zones of mineralization, and an alteration halo that exceeds over 230 m which is suggestive of a massive structurally-controlled fluid system.  We are still in the early days of exploring and learning more about ACKIO but these assay results from AK21-01 have provided us with invaluable information to help us plan our next steps accordingly,” said James Sykes, CEO, President and Director of Baselode. 

The Company will follow this news release with a video presentation for the public in the coming days that will provide encouraging comparisons with other notable Athabasca basement-hosted, high-grade Uranium deposits, such as 1) NexGen Energy‘s (TSX:NXE) Arrow deposit, and 2) Denison Mines (TSX:DML) Gryphon deposit.  The video presentation will also highlight the significance of elevated Cobalt, Copper, and Nickel intersected within the drill hole, as well as the extent and meaning of anomalous Boron, Lithium and Vanadium within the massive alteration halo.

Assay results from the remaining drill holes (AK21-02A to AK21-04) completed on ACKIO in the summer program will be released after they’ve all been received, quality checked, and approved by the Company’s technical team.

Planned Winter Drill Program on ACKIO
Baselode is planning for a 10,000 metre diamond drill program on the ACKIO discovery to begin in mid- to late-January.  Drill holes will be planned to intersect mineralization along strike and dip, which remains open in all directions, and to test for unconformity-style of mineralization.  The drill program will be operated with helicopter support to lessen any ground-induced environmental impacts within the project area. 

ACKIO is located 30 km southeast of well-established infrastructure including an all-season road and powerline that runs between Cameco Corp.’s (TSX: CCO) and Orano’s McArthur River mine and Key Lake Uranium mill joint ventures.  ACKIO is located 70 km northeast of the Key Lake mill. 

NOTES:

 *    Baselode considers “high-grade” to be uranium mineralization with a concentration greater than 0.5 wt% U3O8

1.    All reported depths and intervals are drill hole depths and intervals, unless otherwise noted, and do not represent true thicknesses, which have yet to be determined.

 

About Baselode Energy Corp.
Baselode currently controls 100% of approximately 227,000 hectares for exploration in the Athabasca Basin area, northern Saskatchewan, Canada. The land package is free of any option agreements or underlying royalties.

Baselode’s Athabasca 2.0 exploration thesis is focused on discovering near-surface, basement-hosted, high-grade uranium orebodies outside of the Athabasca Basin. The exploration thesis is further complemented by the Company’s preferred use of innovative and well-understood geophysical methods to map deep structural controls to identify shallow targets for diamond drilling.

QP Statement
The technical information contained in this news release has been reviewed and approved by Cameron MacKay, P.Geo., Projects Manager for Baselode Energy Corp., who is considered to be a  Qualified Person as defined in “National Instrument 43-101, Standards of Disclosure for Mineral Projects.”

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Baselode Energy Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Baselode Energy Corp. Additional information identifying risks and uncertainties is contained in the Company’s filings with Canadian securities regulators, which filings are available under Baselode Energy Corp. profile at www.sedar.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

TABLE 1: HOOK PROJECT – SUMMER 2021 DRILL HOLE U3O8 ASSAY RESULTS

 

DDH*

Target
Area

Az*

Dip

EOH*
(m)

Easting

Northing

Elevation

 

AK21-01

ACKIO

270

-60

471.0

526,245

6,372,955

467

 
     

From
(m)

To (m)

Interval (m)

Vertical
Depth (m)

U3O8 (wt%)

 
     

126.80

128.80

2.00

108.50

0.05

 
     

130.30

130.80

0.50

111.50

0.06

 
     

134.30

149.80

15.50

115.00

0.13

 
   

includes

138.80

139.30

0.50

118.90

1.29

 
   

and

142.30

142.80

0.50

121.90

0.66

 
     

284.60

285.80

1.20

244.40

0.06

 
     

366.70

367.70

1.00

315.50

0.05

 
     

368.80

369.20

0.40

317.30

0.06

 

Cut-off grade = 0.045 wt% U3O8

Maximum consecutive internal dilution = 2.0 m down hole

True widths have yet to be determined

*”DDH” refers to “diamond drill hole”, “Az” refers to “drill hole azimuth” and “EOH” refers to “End of Hole”

“Easting”, “Northing” are both measured in metres, NAD83 Datum, UTM Zone 13N

“Elevation” is presented as “metres above sea level”

“Vertical Depth” is presented as “metres below surface”

 

SOURCE Baselode Energy Corp.

Author: Author

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Energy & Critical Metals

LCID Stock Alert: Lucid Motors Falls on SEC Subpoena News

Shares of electric vehicle maker Lucid Group (NASDAQ:LCID) are down 17% in early trading today after the company said it has received a subpoena from the…

Shares of electric vehicle maker Lucid Group (NASDAQ:LCID) are down 17% in early trading today after the company said it has received a subpoena from the U.S. Securities and Exchange Commission (SEC) seeking documents related to its public debut.

Source: gg5795 / Shutterstock.com

LCID stock has been a high flyer this year prior to today’s move lower, up 370% year to date at $47.27 per share as of Dec. 6.

Lucid Group went public via a reverse merger with special purpose acquisition company (SPAC) Churchill Capital IV. Shares of the automaker officially started trading on July 26 of this year.

What Happened With LCID Stock

In a regulatory filing, Lucid Group said that it had been hit with a subpoena for documents by the SEC. It stated that “The investigation appears to concern the business combination… and certain projections and statements.” News of the SEC probe was enough to send LCID stock sharply lower in pre-market trading.

The SPAC deal that led to LCID stock listing on the Nasdaq was completed with veteran dealmaker Michael Klein’s blank-check firm Churchill Capital IV. In a year marked by dazzling electric vehicle makers coming public, Lucid’s merger with CCIV was one of the largest. Other companies that came public during this time include Nikola (NASDAQ:NKLA) and Fisker (NYSE:FSR).

Why It Matters

Since its founding in 2007 by Bernard Tse and Sam Weng, Lucid Group has quickly become a top electric vehicle manufacturer in the U.S. One reason for this, in addition to its rivalry with Tesla (NASDAQ:TSLA), is that its Lucid Air sedan is already in production. The company has set a production target of 20,000 vehicles in 2022 and 50,000 in 2023.

More broadly, today’s news could lead to a further cooling of EV stocks after they saw a big rally following the Nov. 10 IPO of Rivian Automotive (NASDAQ:RIVN). The SEC probe could be a sign that the entire sector has become overheated.

On that note, shares of Tesla (NASDAQ:TSLA) have fallen nearly 10% in the past week.

What’s Next for Lucid Motors

The uncertainty caused by news of the SEC investigation is going to hurt LCID stock in the near term. More long term, investors will need to determine just how extensive the regulators’ investigation is and if it is focused on financial statements made by Lucid Group ahead of its IPO, or focused instead on Churchill Capital that Lucid merged with to go public.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Author: Joel Baglole

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