Source: Streetwise Reports 09/03/2021
In a recent broadcast, technical advisor Quinton Hennigh provided updates on three exploration companies with recent news and covered a few other exploration stories, all in Crescat Capital's mining exploration portfolio.
Quinton Hennigh discussed three companies and their new drill results.
In an exciting update, Snowline discovered a high-grade epizonal system in the middle of nowhere on its Yukon project early in drilling, Hennigh noted. Hole J-21-011 hit two zones, one 5 meters over 10 grams, the other 6.5 meters over 13 grams. To top it off, the company still has many targets to drill test.
"This is a bona fide discovery," Hennigh added. "This should be celebrated to the nth degree. I cannot tell you how exciting it is to see an early-stage discovery like this."
At its project in Utah, BCM is starting to see mineralization to a degree in the right setting, which it mentioned in its recent news release.
The company is now drilling a hole (indicated in pink on the slide) parallel to but deeper than its initial hole. BCM still needs to get into the potassically altered part of the porphyry-copper system buried under the area there and will likely need to drill more holes to do so. Also, BCM now has money to conduct geophysical work on the property.
The investment thesis for Nulegacy's project in Nevada's Cortez Trend is that the other half of the mineralized system being mined at Nevada Gold Mines' Goldrush is on NuLegacy's property. New drill results there were not impressive, Hennigh said, but there is a good profile from all of the holes drilled, between Drift Anticline and Serena. Given that, Hennigh said NuLegacy's area of focus may need to be between those two targets.
"There is definitely gold here," Hennigh said. "There's lots of anomalous gold. This is definitely a system."
Assays for a set of holes drilled at Drift Anticline are pending. Once NuLegacy receives those, it can determine where next to drill. It has plenty of cash to continue its program.
Hennigh provided a status update on numerous other exploration companies.
Peru-focused Condor is concentrating on Pucamayo, a Pierina-like high-sulphidation target with the potential to contain 5,000,000-plus ounces, Hennigh said. The company has been having trouble arranging access to drill targets for various reasons, including protracted negotiations and COVID-19.
"Over the next couple of months, based on what we're hearing, they should be able to get in there and start drilling this target," said Hennigh. "It's going to be quite exciting once they do."
The investment thesis for this company operating in Bolivia is that its Iska Iska is one of the biggest silver and tin discoveries in many years. The system's footprint spans about 2 kilometers north-south and over 1 kilometer east-west.
"There is huge potential remaining to unlock value here, based on the current drilling," Hennigh said.
With four rigs working on the property, Eskay Mining is nearly halfway done with its planned 30,000 meter drill program. Most of the holes it drilled this season have visible mineralization, Hennigh said. The recently hit mineralization looks much like that encountered in the early days at Eskay Creek.
"We see this as one gigantic, ore-forming system of volcanogenic massive sulphide type. It's precious metals rich. We think that there are a lot of targets that will deliver on this property," said Hennigh.
Cashed up Newfound Gold has drilled 38% of its planned campaign. The Keats target, which has been drilled the most, remains open downplunge. Newfound is starting to systematically drill the Lotto target. Both are likely to return more high-grade results, Hennigh said.
"This thing has a lot of room to grow from here," he added.
Problems with drilling, including an inexperienced crew, has hampered White Rock's drill program in Alaska. This season, White Rock will likely complete only two-thirds of it planned meters, which means Last Chance will not get drill tested, a disappointing development according to Hennigh.
Cabral has cash and "is doing the right thing," Hennigh noted, as it is going to grow its resource at its district-scale Cuiu Cuiu project in Brazil.
Previous drilling at Defiance's large Zacatecas project in Mexico showed high-grade, big, fat vein systems at depth, so the company will aggressively drill there over the next few months. Along with Zacatecas, Defiance has Tepal, a copper gold porphyry system that "could end up being a multimillion-ounce of gold equivalent project," Hennigh said.
The plan is to drill Tepal soon as well, but permitting is taking longer than usual in Mexico due to COVID-19.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. He/she or members of his/her household own securities of the following companies mentioned in the article: None. He/she or members of his/her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.
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Toshiba, Sojitz and CBMM partner to commercialize next-generation Li-ion batteries with NTO anodes
Toshiba Corporation, Sojitz Corporation, and CBMM have entered into a joint development agreement for the commercialization of next generation lithium-ion…
Toshiba Corporation, Sojitz Corporation, and CBMM have entered into a joint development agreement for the commercialization of next generation lithium-ion batteries using niobium titanium oxide (NTO) as the anode material.
One of the major requirements for rechargeable battery development is greater energy density and faster charging. NTO has twice the theoretical volume density of the graphite-based anode generally used in lithium-ion batteries. In June 2018, the three companies entered into a joint agreement to develop NTO’s potential as an anode material.
This work, led by Toshiba’s Corporate Research & Development Center, has reached fruition with the development of prototype cells, and the companies have now agreed to extend collaboration for accelerating development of mass production processes and the early commercialization of next-generation lithium-ion batteries.
Prototype cell & Niobium Titanium Oxide (NTO)
The three companies aim to commercialize high energy density, quick charging batteries in FY2023, mainly targeting application in commercial e-vehicles. CBMM has contracted with Volkswagen Caminhões e Ônibus, a pioneer in the development and serial production of electric trucks in Latin America, to mature this technology further in real application. Toshiba and Sojitz will support this project.
The NTO battery will be installed on new electric vehicle designed by Volkswagen Caminhões e Ônibus as a pilot project and parties will collect the valuable vehicle operation data.
Niobium (Nb), one of the metallic elements, is an important additive in the production of high-grade steel alloys, including high-tensile and stainless steel, and its ability to enhance strength while reducing weight has made it indispensable for automotive applications. Brazil-based CBMM is the world’s leading producer of niobium and is well-known for its strong technology and product development programs.
As CBMM’s shareholder and distribution agent in the Japanese market, Sojitz has cultivated the knowledge and capabilities needed to establish a stable supply system and assist in the development of different applications for niobium.
Towards commercialization, Toshiba aims to secure stable supply of niobium materials from CBMM and Sojitz, and the three companies will target to gain market share in the rapidly expanding secondary battery market by utilizing CBMM and Sojitz’s global network.
Your cash will lose at least 5% of its purchasing power in the next year
Earlier this week, Fed Chair Jerome Powell announced that the real yield on dollar cash and cash equivalents is likely to be -5% or less over the next…
Earlier this week, Fed Chair Jerome Powell announced that the real yield on dollar cash and cash equivalents is likely to be -5% or less over the next 12 months. Yes, your cash balances will lose at least 5% of their purchasing power over the next year, and that's virtually guaranteed. So what are you—and others—going to do about it?
Assumptions: This forecast of mine optimistically assumes that 1) the first Fed rate hike of 25 bps comes, as the market now expects, about a year from now, and 2) the rate of inflation slows over the next 12 months to 5% from its year-to-date rate of 5.9%. Personally, I think inflation next year likely will be higher, if only because of the delayed effect of soaring home prices on Owner's Equivalent Rent (about one-third of the CPI), the recent end of the eviction moratorium on rents, and the continued, unprecedented expansion of the M2 money supply.
I'm a supply-sider, and that means I believe in the power of incentives. Tax something less and you will get more of it. Tax something more and you will get less of it. Erode the value of the dollar at a 5% annual rate and people will almost certainly want to hold fewer dollars than they do today.
I'm also a monetarist, and that means I believe that if the supply of dollars (e.g., M2) increases by more than the demand for dollars, higher inflation will be the result. We've already seen this play out over the past year: the M2 money supply has grown by more than 25% (by far an all-time record) and inflation has accelerated from less than 2% to 6-8%. Massive fiscal deficits have played an important role in this, but so has an accommodative Fed. Between the Fed and the banking system, 3 to 4 trillion dollars of extra cash were created over the past 18 months. At first that was necessary to supply the huge demand for cash the followed in the wake of the Covid shutdowns. But now that things are returning to normal, people don't need or want that much cash. Yet the Fed continues to expand its balance sheet, and they won't finish "tapering" their purchases of notes and bonds until the middle of next year. That means that there will be trillions of dollars of cash sitting in retail bank accounts (checking, demand deposits and savings accounts) that people will be trying to unload.
If we're lucky, the inept and feckless Biden administration will be unable to pass its $1.5 trillion infrastructure and $3.5 trillion reconciliation bills in the next several weeks. This will lessen the pressure on the Fed to remain accommodative, but it's not clear at all whether it will encourage the Fed to reverse course before we have a huge inflation problem on our hands. Non-supply-siders (like Powell) view an additional $5 trillion of deficit-financed spending as an unalloyed stimulus for the economy. Supply-siders view it as a virtually guaranteed way to increase government control over the economy and thereby destroy growth incentives and productivity.
Amidst all this potential gloom, there are some very encouraging signs, believe it or not. Chief among them: household net worth has soared to a new high in nominal, real, and per capita terms. Also, believe it or not, the soaring federal debt has not outpaced the rise in the wealth of the private sector. See the following charts for more details:
Commodities and Cryptos: Oil’s path higher, Gold turns positive, China’s Bitcoin blow
Oil Crude prices continue to climb higher as both short-term supply and demand fundamentals suggest the oil market will remain tight throughout the winter. …
Crude prices continue to climb higher as both short-term supply and demand fundamentals suggest the oil market will remain tight throughout the winter. The crude demand outlook is turning very upbeat as some scientist’s models predict a steady decline in COVID cases through March. Holiday bookings will continue to pick up, supporting jet fuel demand and a trucking demand crisis will likely mean diesel demand will remain very strong.
A cherry on top for the bullish outlook is that low natural gas inventories and a cold winter for the northern hemisphere could mean added demand for crude as an alternative energy source. Today’s rally in crude prices is impressive as it has been a steady climb higher this week, alongside a strengthening dollar that normally dampens appeal for commodities. Oil prices have one direction to go for the remainder of the year and that is higher.
Before the New York open, WTI crude softened after Iranian Foreign Minister Hossein Amirabdollahian said Iran nuclear deal talks will resume soon. Expectations for sanction relief for Iran have diminished since Iran’s inauguration day. Negotiations will be a long drawn-out process that will likely require compliance before the US gives any sanction relief. Extra Iranian barrels of crude seem unlikely to be a 2021 story.
Gold prices turned positive after Evergrande’s woes extended beyond China. US Evergrande investors reportedly have not yet received interest payments and the China Evergrande New Energy Vehicle Group Ltd has a serious shortage of funds. It looks like China won’t save Evergrande but will try to contain any systemic risks, which should lead to some safe-haven flows for bullion.
Gold has been battling against a stronger dollar that stemmed from surging Treasury yields post-Fed. Gold is in a very tough spot and volatility will remain elevated with the risks remaining to the downside. The US growth story will continue to improve if COVID modelers are right about a steady decline in COVID cases through March. If Evergrande’s fallout is contained over the weekend, gold could be vulnerable for a test of the $1700 level.
Bitcoin was dealt a major blow after China’s central bank said all cryptocurrency transactions are illegal and must be banned. Bitcoin initially fell over 5% and the other top coins dropped around 10%. Overseas exchanges that offer Chinese residents services are illegal, also taking aim at Chinese nationals who work at those exchanges are at risk of an investigation. Bitcoin, Ethereum, and Tether were specifically named as cryptos that can’t circulate in China.
Beijing withheld banning possession of cryptocurrencies, which would have dealt a massive blow to the entire crypto space. A banning of possession of cryptos probably would have sent everything crypto 20% lower. If you are a Chinese crypto holder, you might be deciding now is the time to cash out. Three years ago, crypto was heavily centralized in China, with over two-thirds of the mining happening there. If Chinese crypto holders fear a ‘possession ban’ is looming, a tremendous amount of selling from old wallets may occur.
Bitcoin remains extremely vulnerable on the break of the $38,000 level, which could trigger momentum selling to the $35,000 level.aim gold
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